Local Real Estate Market Holding Steady
Surprisingly, the local real estate market more than held its own during August, normally a very slow month. Mid-level and Entry-level home sales continued to be very strong. Cape Coral home sales rose slightly from 467 sales last August to 483 sales this August. Prices saw a $7,000 bump from $274,800 a year ago to $281,800 this August. Inventory remained low at 3.7 months and list to sales price held steady at 97%. Ft Myers home prices shot up from $300,800 to $335,800, an eye-opening 11.5% increase. Tom: I expected SWFL home prices to drop slightly from last August, but I'm happy to be wrong when it's in the positive direction. I am, however, expecting Average Home Prices to drop in September from last September, but I will again be happy to be mistaken.
Kiplinger Ranks Fla. No 8 for Job-Growth Rate
Here are additional interesting Florida stats by Kiplinger:
Current Population: 20,984,400 (third highest U.S. population....sorry New York)
2018 Florida Projected Job Growth: 2.3%
Unemployment rate at year-end 2018: 3.7%
Expected Florida GDP for 2018 & 2019: Approximately 3.8%
Fla. New Home Starts: 2018: +10% 2019: (projected +
U.S. Tax Overhaul Causing High-Income People to Flee Many States
According to Redfin Corp, luxury-home prices in Florida have climbed 16% in the second quarter. Sales of SW Florida’s million-dollar-plus homes during the first half of 2018 rose 25% from a year earlier, according to Florida Realtors. This is a direct result of numerous high-income folks from expensive tax states moving to the Sunshine State.
Residents in states such as NY, NJ, Ill, Calif, and a few others are crying “no-mas”, and deciding to enjoy tax-friendly states such as Florida. The year-round warm weather and relatively affordable housing don’t hurt either. Tom: At the beginning of the year I projected that the new tax laws would encourage high-income people to move to Florida, and this is playing out even more than I anticipated. In the past, we rarely had many interested buyers from California, but this year we’ve had several Californians relocating to our affordable, tax-friendly area. As mentioned in January’s Newsletter, I expect that the rate of relocations from high earners to skyrocket once well-to-do taxpayers fill out their 2018 Income Tax Returns on April 15, 2019.
Which Smart-Home Gadgets Do Buyers Want Most?
According to a survey from 300 builders by John Burns Consulting, 53% say they now incorporate smart-home technology into new construction. 60% of buyers would spend more on a home with a smart thermostat. 67% say they’d pay extra for an oversized kitchen. More than 60% of new-home buyers say they’d pay more for an exterior security camera and smart locks.
Young singles and couples: most likely choose smart thermostats
Families: most likely to choose a smart garage responsive to app controls and voice commands
Older buyers: most likely to pay extra for smart locks
Fact & Stats
Ellie Mae: 91% of New-Home Loans Went to Millennials: An increasing number of younger adults are becoming homeowners. The number of millennials buying homes is continuing to rise, which will further add to the current problem of low inventory. Construction of more new homes is badly needed
Jumbo Loans More Practical for Many Buyers: “Jumbo” loans (up to $453,100 for most of the U.S. and as high as $679,650 in some high-priced areas) are becoming less expensive than conforming loans, according to CoreLogic. In response, jumbo loans are a growing share of the mortgage market and have reached its highest rate since 2009 – about 15% of home loans. Lenders require higher credit standards to get a jumbo loan, which lowers risk and gives banks more incentive to issue jumbo loans.
Pay for Your Children's College Judiciously: Reports show that homeowner's with a mortgage who also pay for their children's costly college expenses are more prone to foreclosure.
AirBNB Buying Apartments: AirBNB is investing in apartment buildings for the purpose of short-term rentals. The company is primarily investing in vacation areas, many of which will be in Florida. Tom: This could create a further shortage of annual rentals, which will, in turn, cause a continued shortage of homes for sale.
Chiquita Boat Lock Update - 2018 Property Tax Rates Released - 95% Likelihood Home Prices Will Rise Over Next Two Years
Low & Mid-Priced Home Sales Very Strong in Cape Coral - Baby Boomers Top Retirement Concerns - New $25K Florida Homestead Property-Tax Break on Nov. 6 Ballot
Cape Coral/Ft Myers 2nd “Best Place People are Moving to in 2018” - Cape Home Prices Rise $22K Over May 2017 – Ft Myers/FtMyers Beach Up $40K & Construction Costs Rising - Florida Ranks No.1 as “Best State for Military Retirees”
Cape Coral Real Estate Bounces Back from Weak 1st Quarter - Tax Reform Already Boosting Demand for Florida Real Estate - Keep Interest Rates in Perspective
Home Prices And Sales Numbers - Florida's Stringent Building Codes Thwarted Hurricane Damage - Foreign Buyers Still Loving The Sunshine State
Want To Buy A Home In SWFL While Still Living In Your Current Home? - Florida Property Taxes Are Average In Comparison To Other States - Pickleball In Cape Coral
SW Florida Real Estate Once Again Showing Strong Signals - 12 Reasons SWFL Real Estate Will Stay Strong - Be Wary Of The Builder You Choose
Cape Coral/SWFL Recap & 2018 Projections - Will Tax Reform Affect SWFL Real Estate? - Cape Coral Rated #1 Boomtown In U.S.
Why Aren't Homeowners Becoming Sellers? - Profile Of International Buyers In Florida - Local Home Market Synopsis
Interesting Florida/Cape Coral Population Stats - Despite Irma, Local Unemployment Rate Drops to 3.5% - Bubble? Nowhere in Sight for U.S. Housing Market
Irma Slows Down Sales But Not Prices - Nor-Tech Hi-Performance Boats To Locate World Headquarters In Cape Coral - Homesteaded Properties Will See Assessed Values Increase by 2.1%